"5 Mistakes to Avoid When Buying an Insurance Savings Plan"

🔹 Introduction: Be a Smarter Saver

In Singapore’s financial landscape, insurance savings plans remain popular for their blend of protection and disciplined saving. But too often, people jump in without fully understanding what they’re committing to — leading to regret later.

Let’s highlight five common mistakes you should avoid so that your savings plan works for you, not against you.

✅ Mistake 1: Focusing Only on Projected Returns

Many people get drawn in by attractive projected returns in policy illustrations. What to remember: These projections are based on assumptions and are not guaranteed. Look carefully at the guaranteed values vs non-guaranteed bonuses.

✅ Mistake 2: Underestimating the Lock-in Period

Insurance savings plans require long-term commitment. What to remember: Early surrender can lead to significant losses. Make sure you are comfortable with the commitment period before signing.

✅ Mistake 3: Ignoring Liquidity Needs

You may not be able to access your funds easily if you need them urgently. What to remember: Insurance savings plans are not meant for short-term needs. Ensure you have sufficient emergency cash elsewhere.

✅ Mistake 4: Buying Without Clear Goals

Some people buy because “it seems like a good deal” but have no clear objective. What to remember: Align the plan with your financial goals — e.g., education planning, retirement, wealth transfer.

✅ Mistake 5: Not Understanding the Charges

Some assume “saving plans have no fees” because there’s no advisory fee. What to remember: Insurance saving plans have embedded costs — distribution costs, insurance charges, fund management fees — that affect your returns.

🔔 Conclusion: Go in with Eyes Open

An insurance savings plan can be a useful tool for disciplined wealth accumulation and protection — but only if you understand what you’re committing to.

Ask questions, get clarity, and align any plan with your life goals.

✨ Call to action idea: "Want help reviewing your current policy or planning a smarter savings strategy? Reach out for a complimentary consultation today."